The respondent was sexually abused by a priest while a student at a school run by the appellants.
The trial judge and jury found the appellants vicariously liable.
The jury awarded $350,000 in general damages, $75,000 in aggravated damages, $56,400 in future treatment costs, $1,588,781 for past and future income loss, and $500,000 in punitive damages.
The appellants appealed on three grounds: the jury instruction on burden of proof for past income loss was erroneous, the punitive damages award was excessive, and prejudgment interest should not have been set at 5 per cent.
The Court of Appeal upheld the jury instruction and punitive damages award but found the trial judge erred in setting prejudgment interest at 5 per cent instead of 1.3 per cent.